TSMC to build semiconductor plant in Dresden as part of €10bn JV

Today, August 8, the world’s largest semiconductor manufacturer Taiwanese company TSMC, German companies Infineon Technologies and Robert Bosch, as well as the Dutch NXP Semiconductors announced on the establishment of a joint venture (JV), within the framework of which a plant for the production of modern semiconductors will be built in Dresden.

Construction should begin in 2024 and be completed in 2027. The total investment, taking into account state support measures from the EU and the German government, will amount to €10 billion. According to Financial Times50% will be contributed by the German government in the form of subsidies to support the project.

70% in the joint venture will belong to TSMC, the rest of the companies – 10% each. This project is part of a large programs the German government to develop the semiconductor industry and attract foreign companies to create manufacturing enterprises in Germany.

In June, German Chancellor Olaf Scholz and Intel CEO Pat Gelsinger signed agreement that the company will increase its investment in the construction of chip factories in Magdeburg, and that the German authorities will increase support for this project. As writes Bloombergthe parties agreed that Germany will provide the company with a subsidy of €10 billion. Intel previously announced that it intends to spend €17 billion on the construction of a plant in Magdeburg. Now the company is going to build two plants and estimates an investment of €30 billion. The first plant should be launched in four or five years.

Evgeniy Khvostik